Coeur Provides Company Update Post-New Gold Closing
Executive Summary
- Coeur Mining released consolidated 2026 production guidance incorporating the newly‑acquired New Afton and Rainy River mines, projecting total gold output of 680,000–815,000 oz, silver 18.7–21.9 M oz, and copper 50–65 M lb.
- The Board approved an expanded $750 million share repurchase program and instituted a $0.02 per‑share semiannual dividend, marking the first regular dividend for the company.
- A new $1.0 billion revolving credit facility was secured, and updated 2025 reserves/resources were disclosed for New Afton (including maiden K‑Zone resource) and Rainy River, extending mine lives by up to two years.
Key Details
- Production Guidance (2026) – Combined Coeur + New Gold mines:
- Gold: 680 k–815 k oz (incl. 60–80 k oz from New Afton, 230–275 k oz from Rainy River)
- Silver: 18.68 M–21.93 M oz (incl. 130–180 k oz from New Afton, 350–450 k oz from Rainy River)
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Copper: 50–65 M lb (all from New Afton)
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Cost Guidance (CAS) – Example: New Afton gold CAS $1,000‑$1,200/oz; Rainy River gold CAS $2,150‑$2,350/oz.
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Capital Expenditures 2026 (US$ M):
- Sustaining CAPEX: $291–$337 (Coeur $207–$239 + New Gold $84–$98)
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Development CAPEX: $146–$189 (Coeur $98–$125 + New Gold $48–$64)
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Exploration Spending 2026 – Total $118–$132 M (including $29–$33 M capitalized).
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Financial Policy Updates –
- Expanded share repurchase: $750 M (supersedes prior $75 M program).
- Inaugural dividend: $0.02 per share, semi‑annual, first payment Q2 2026.
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New revolving credit facility: $1.0 billion to replace existing $400 M line.
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New Afton Technical Highlights –
- Proven & probable reserves (year‑end 2025): 36.2 Mt containing 780 k oz Au, 2.1 M oz Ag, 591 M lb Cu.
- Measured & indicated resources: 104.7 Mt with 1.5 M oz Au, 5.6 M oz Ag, 1.2 B lb Cu.
- Maiden K‑Zone resource (measured & indicated): 47.6 Mt, 715 k oz Au, 2.9 M oz Ag, 606 M lb Cu; inferred: 5.9 Mt, 86 k oz Au, 309 k oz Ag, 77 M lb Cu.
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Expected production from C‑Zone (next 5 yr): 105 k oz Au, 88 M lb Cu; throughput to ramp up to 15 kt/d in H1 2026.
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Rainy River Technical Highlights –
- Proven & probable reserves (year‑end 2025): 2.2 M oz Au, 5.6 M oz Ag.
- Mine‑life extension: reserves‑only life extended to 2035 (+2 yr).
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Expected annual production (next 3 yr): 287 k oz Au, 527 k oz Ag.
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Financial Impact – Projected LOM EBITDA $6.4 B (combined), free cash flow $5.0 B; effective tax rate 30‑36%.
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Conference Call – March 23 2026, 11:00 a.m. ET; replay available through March 30 2026.
Notable Quotes
“Today marks an important milestone in Coeur’s transformation to the sector’s newest senior precious metals producer… The tremendous free cash flow profile … will allow the Company to meaningfully accelerate and enlarge its return of capital strategy.” – Mitchell J. Krebs, Chairman, President & CEO
Materiality Assessment: Material – Positive (significant guidance update, new dividend, share repurchase expansion, and reserve/resource disclosures that are likely to affect investor valuation).